Plastic Injection Molding R&D Tax Credits

R&D operations span the plastics injection molding industry, from materials to packaging. Research activities start with concept development and continue to the testing phase, studying alternative designs, process techniques, 3D modeling, CNC programming, and simulations. Even after a product has been manufactured, process improvement activities and the creation of improved testing techniques may be tax-deductible.

Because of this, if your firm is involved in these and similar operations, you might be suitable for federal and state incentives like R&D tax credit in the Plastic Injection Molding industry. Although the credit amount can vary depending on your location, you can get as much as 22% of your QREs covered.

Qualifying Costs and Activities

To apply for Plastic Injection Molding R&D tax credit, make sure your firm is involved in the following qualifying activities:

• Increasing automation or optimizing manufacturing processes;

• Creating unique composites and materials;

• Choosing the materials to be used for different projects;

• Designing parts;

• Creating new molds;

• Evaluating prototypes and first products;

• Checking injection intervals;

• Conducting quality assurance and product testing;

• Performing temperature research.

The benefit of claiming this incentive is that you can use it to recoup the money you invested in raw materials, cloud computing services, supplies, and subcontractors. In addition, you can offset payrolls for positions like CAD engineers, tool makers, robotics and rotomolding engineers, laboratory technicians, pneumatic or hydraulic technicians, production supervisors, and polymer scientists.

If in doubt about whether your company qualifies for the Plastic Injection Molding research and development tax credit, contact our team. We are here to answer any questions and guide you through the application process.

FAQs

What kind of companies can apply?

Plastic injection molding companies that conduct qualifying research activities.

What data do I need to calculate credit?

Claim period gross receipts.

What information do I need to provide?

General ledger expense detail, payroll records, project notes, project lists, emails, purchase orders, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.